Durham Region Association of REALTORS® News

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DURHAM REGION, July 6, 2011 – The Durham Region Association of REALTORS® reported 1,046 sales for the month of June, a slight increase from 1,040 in May. This represents a 13.7% increase from June 2010 when there were 920 sales.  

“At the mid-point of 2011 there have been a total of 5,057 sales which is a 7.6% decrease from the first half of 2010. However, this number is 1.4% higher than the 5 year average indicating that sales in the Durham Region remain stable” commented Dierdre Mullen, President of the Durham Region Association of REALTORS®.

The number of active listings is 2,119, down 2% since May and down 16.1% when compared to June of last year when there were 2,461 homes for sale.  This figure also represents a drop of 18.5% from the 5 year average.

“Even though the resale inventory is considerably lower than in previous years, we’re seeing a steady increase in the average selling price across the Region. The average selling price for June 2011 was $322,932 which shows a 2.2% increase from last month, a 6.1% increase from June 2010 and a 10.3% increase compared to the 5 year average. This trend suggests that Durham Region is in demand” said President Mullen.

Durham REALTORS®, We Work Where You Live.  To contact a local Durham Association REALTOR® for more specific and local housing statistics or search for a weekend open house or listings in your neighbourhood, please visit www.DurhamRealEstate.org.

The first time home buyer land transfer tax (LTT) rebate is out of date. Due to increasing home prices, the rebate no longer covers the average LTT bill for first time home buyers. Instead, they pay almost $1,500 in LTT after receiving the rebate.

REALTORS® believe that the first time buyers of today should not have to bear a heavier tax burden then previous generations. We believe that affordable home ownership is as important in 2011 as it was in 1996 when the LTT rebate program was first introduced.

From 1996 to 2010, the average price of a resale home in Ontario went up 120 per cent from $155,725 to $ 342,245. During the same period, the provincial government increased the LTT rebate by $275 or just 16 per cent. As a result, a first time home buyer today in Ontario pays $1,500 in LTT more than the previous generation on an average priced home after receiving the rebate.

REALTORS® are therefore urging all candidates running in the 2011 Ontario Election to support increasing the LTT rebate for first time home buyers from $2,000 to $3,500. This would return fairness to the LTT rebate program and allow present day first time home buyers to enjoy the same tax savings as buyers in previous years.

The Ontario LTT is paid on top of other closing costs such as legal fees, moving expenses, home inspection fees and mortgage insurance. Together, these closing costs eat away at a purchaser’s down payment, increasing the size of their mortgage principal. 

The tax punishes young first time home buyers in particular because they pay the majority of their closing costs out of their own pocket, not from the proceeds of a previous home sale. As a result, closing costs, such as LTT, prevent some first time home buyers from entering the market altogether.

As a working REALTOR® I know the dream of home ownership among young Ontarians is as strong as it has ever been. Returning fairness to the LTT rebate program will go a long way towards ensuring that dream continues to flourish.

Dierdre Mullen, President
Durham Region Association of REALTORS®
(905) 723-8184